ISLAMABAD – A notification sent to Pakistan Stock Exchange (PSX) onMonday by K-Electric revealed Shanghai Electric Power Company Limited hadwithdrawn its offer to acquire 66.4 percent majority stake in the company.
In a notification filed by Arif Habib Limited as manager to the offer said,“would like to intimate that the time period for making the publicannouncement of offer (as extended by the Securities & Exchange Commissionof Pakistan) will lapse as of March 26, 2018 (“expiry date”) on the basisthat certain regulatory and other approvals for the transaction remainoutstanding.”
The notification further read “In the premises, and pursuant to Regulation21(1)(e) of the Listed Companies (Substantial Acquisition of Voting Sharesand Takeovers) Regulations, 2017 read with the Securities Act 2015, wehereby give notice that as of the expiry date, the POI stands withdrawn.
As the acquirer continues to be fully committed to consummate thetransaction pending receipt of regulatory and other approvals, the acquirershall make a fresh public announcement of intention in accordance with theprescribed formalities immediately with effect from the expiry date.”
However, Shanghai Electric indicated in the announcement that they remainfully committed to consummate the transaction to acquire the stake inK-Electric.
In a comment to *Pakistan Today, *Pak Kuwait Investment Co AVP ResearchAdnan Sheikh said “This sets a bad precedent for foreign investors. Itshows government’s and the regulators laziness. This deal has been going onfor over a year now.”
In mid-March, K-Electric had warned delay in clearance of K-Electricsacquisition by Shanghai Electric Power by regulatory authorities wouldhamper investor confidence.